Chinese smartphone maker Vivo, which is also the title sponsor of the Indian Premier League (IPL), may go for a negotiated exit from the league amid mounting calls in India to boycott Chinese products and sever ties with Chinese companies.
The Board of Control for Cricket in India (BCCI), which owns and runs the league, is under pressure to review its sponsorship policy for the T20 tournament, including deals with Chinese companies.
IPL's high-powered governing council, which is slated to meet this week, will review all sponsorships of the T20 tournament.
Vivo, which replaced PepsiCo in October 2015 to become IPL's title sponsor will have to find an Indian partner who would be ready to bear the financial burden for the remaining duration of the deal, if the company chooses to end the agreement on its own. This would give Vivo an exit out of a tricky situation and BCCI may also not lose face with sponsors,
However, in the current situation, if the BCCI decides to call off the deal with Vivo,
Vivo would exercise this choice carefully in the wake of anti-China sentiments across India.
Vivo had bagged the title sponsor rights for IPL for around Rs 2,200 crore (in 2015). The Chinese handset manufacturer shells out Rs 440 crore annually towards its title sponsorship.
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